2. Housekeeping: provision of a Clean.
Comfortable and Safe environment.*
Budget: Plan of expenditure and necessary to
control the costs.
Operating Budget: A Financial Statement of a
Plan giving a Estimate of Operating Revenues,
Profits (or losses), expenses expected for a
given period of time.
Operating Costs: Expenses associated with
generating Revenues.
3. Operational budget for housekeeping
department: The portion of Operating Budget
dealing with Guestroom Revenue,Housekeeping
dept. salaries and wages,employee costs and
controllable costs relating to servicing of the
guestrooms and public areas of the hotel.
Occupancy Forecast: Short range estimate of
guestroom occupancy expected over a given
period of time, e.g. one week, one month etc.
4. Should be time-bound
Should be simple and practical
Keep in mind unforeseen problems
Important as a Mode of control over finances
Done through planning and forecasting.
Provides opportunity to critically review past
planning, costs of department, present
accomplishment and take appropriate steps to
accomplish more.
5. There are three main areas which are considered
before preparing of Budget of Housekeeping
Department:
1. Wages and salaries
2. Operating costs
3. Capital expenditure
The budget should be the probable cost of:
1. wages, salaries
2. additional cleaning equipment
3. furniture, furnishings
4. cleaning agents, guest supplies, linen etc
5. planned renovation and redecoration.
6. Each item is given a priority rating with
indicating whether it is a replacement or
addition.
It is highly essential to have all records,
evaluations of past performances and plans
e.g. usage of various agents, the cost of repair
services etc, to be able to justify the cost of a
particular item.
7. Thus keeping cost of following is beneficial:
1. Servicing a room
2. Cleaning of a particular area
3. Service of early morning teas
4. Night service,i.e, turning down
5. Overtime compared with extra staff
6. Hiring compared with owned linen
7. Checking of linen
8. Office supplies, handwritten versus printed lists
9. Re-upholstering versus purchasing
10. Bulk buying
8. To predict future happenings, e.g. staffing for
high or low occupancy, annual cleaning,
redecoration, etc.
Plan in order that these eventualities are met
and objectives are achieved within time.
A good planner thinks on lines of economy
utilizing time , labor, and materials in the best
possible way.
Fullest and most efficient use of equipment,
space and human effort by forecasting and
planning what work has to be done; when and
how often to be done; how is to be done; how
long will it take etc.
9. Budget handover from Top Mgt not always
successful or followed
Budget with participation of the Executive
Housekeeper is essential as it brings input of
operational heads.
To keep in mind changes in external factors
such as labour market, commodity market etc.
10. Company expectations to be stated
Criteria to be made regarding standards to be
met in use of supplies
After identifying Expected Sales and related
costs, Top Mgt. should critique the budget
indicating where adjustments need to be made
so that Organization’s will be met.
11. Budgeting process commences well before the
beginning of a Fiscal Year. By the 10th period of
an active year in progress.
Operating Budgets usually reflect periods in a
fiscal year (mostly 13 periods system)
13 period system: is a 28days/ four
consecutive weeks taken as a period resulting
in 13 periods an year.
12. Appropriate because period starts First day of
Scheduled work week and last on last day of
fourth work week.
Allows comparison of Revenues and Costs on
Consistent and systematic basis each period.
12 period system’s disadvantage is that every
2months out of 12, extra payday will occur
causing distortion in wage cost against
revenue.
13. Each budgeting cycle is commenced by those
involved in budgeting room sales.
Schedules indicating volumes of room sales to
be expected each day in the upcoming year are
prepared and finalized before Operational Cost
Budgeting is begun by the Housekeeping
department as it is affected directly by the
fluctuating occupancy.
These schedules also show comparison
between upsoming budget year and the
existing year in order that growth be analysed.
14. Growth in sale of rooms along with changes in
ARR and expected period revenues later prove
significant in development of statistical targets
of Housekeeping department.
Consolidated Room Sales Summary will serve
as a basis for formulation of Housekeeping
Department’s Budget.
Consolidated Room Sales Summary: presents
the expected room sales, occupancy
percentage, ARR, Sales in Dollars (or rupees) to
be generated by the Annual Budget.
15. Man-Hour Utilization represents the Highest
housekeeping Cost of Operation.
Man-Hours of various types of works
performed within Housekeeping department
are classified for accounting purposes.
Hours worked by section housekeeper aides
(08),those worked by supervisory personnel are
(02) and so on.
16. Executive house keeper need to explain how
Man-Hour requirement are made.
A standard Man-Hour Justification Form is
submitted along with the Budget.
Considering the expected occupancies the
Executive Housekeeper refers to the Table of
Personnel Requirement to determine exactly
how many man-hours will be required to
service this occupancy.
17. *Table of Personnel Requirement: At each
percent of Occupancy, this table establishes
the number of rooms that will require service,
the number of housekeepers required at the
rate of 18 rooms cleaned per 8hour workday.
Number of housekeepers required for one
week, and no. of housekeepers required for
28days/period.
18. Change in the facility can drastically alter a
budget.
Having a good grasp on the needs of the
facilities, helps to put a price tag on it.
Know the quality levels and square footage of
each building – the number of rooms, light
fixtures, types of flooring, etc and compare it
to the history of the facility enumerate
advancements made to the facility since the
last budget.
19. Developing a “needs analysis” will help to
determine the building’s desired level of clean,
as well as the frequency of cleaning and
manpower necessary to reach the desired goal.
A proper needs analysis will also take into
account both the data on the building, as well
as high traffic areas and impression areas, such
as restrooms and entryways.
20. Evaluating “frequency of tasks” can save budget dollars
in the long run. Thus, it is important to figure out what
absolutely needs to be done. Evaluate what tasks can be
reduced in frequency, while continuing to maintain
quality.
E.g.: An office where each tile is scrubbed every day. It
could just be swept, saving time and money, while
cutting labor in half and reducing expenses such as
chemicals and water.
When evaluating work it is also important to include
those activities that don’t involve cleaning. Omitting
this when putting together a comprehensive budget will
skew the numbers drastically. For e.g., Activities such as
room set-up and breakdowns can take as many as 10
hours a week.
21. Eliminate duplication of services. For e.g.: One
facility had day maids and porters, as well as a
cleaning crew at night. Then they realized that
they all do the same thing so we moved
everything to daytime so that the work is only
done once a day.
In the past, hotels would call a couple different
suppliers and just go with the lowest price.
They probably weren’t getting the best price
because we didn’t create loyalty to any one
supplier. Not to mention they spent a lot of
time with the process. Now Hotels are loyal to
one supplier and thus have seen more savings
than ever before.
22. Sitting down and developing a time study for every task
required to maintain a building will help facility managers
determine where to cut time and save money. Coming up
with this calculation will outline the annual hours spent on
each task.
When factoring labor into the budget, facility managers
should consider both productive and non-productive time
because both will impact budget dollars. Does your facility
provide vacation, family medical and sick time? Those are
all days where employees are being paid, but work is not
getting done. Analyzing this may determine that of the
total paid hours, maybe only 70 percent are actually work
hours. This needs to be factored in.
23. Preventative maintenance will also save on the
budget. Listening to workers is a great practice
in preventative maintenance. Because they use
these machines often, workers will know when
maintenance is necessary.
Value the opinion of your staff when
considering budgets and purchasing decisions.
They will tell you what needs to be done and
what improvements are necessary.
24. Branson & Lennox, 4H’s
Jones & Martin, Professional Mgt. of
Housekeeping Operations.
www.cleanlink.com
